CUNA supports one of NCUA’s potential approaches to simplifying risk-based capital (RBC) requirements, but also reiterated its long-held belief that the 2015 RBC rule is “functionally unnecessary” in comments filed with the agency Monday.
NCUA issued an advance notice of proposed rulemaking at its January board meeting.
It contains two approaches to simplify RBC requirements:
- The first would replace the 2015 RBC Rule with a “risk-based leverage ratio” (RBLR) requirement, which uses relevant risk attribute thresholds to determine which complex credit unions would be required to hold additional capital (buffers).
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